Canada vs U.S. Trade War Escalates | US News

The U.S. is hitting back hard in a escalating trade war with Canada, slapping a three-week countdown on a ban targeting dairy, alcohol, and motorcycles — a direct response to Canada’s $20 billion in retaliatory tariffs. President Trump is also blocking Canadian firms from U.S. government contracts, demanding “full reciprocity.” Meanwhile, Prime Minister Carney is pivoting toward Europe, seeking deeper ties without full EU membership, acknowledging short-term pain but betting on long-term growth through domestic investment and trade diversification. Canada insists its tariffs are defensive — protecting jobs and preventing unfair advantages — while rejecting U.S. demands that would deepen dependency. This showdown tests whether Canada can withstand U.S. pressure without surrendering sovereignty, all while building resilience beyond North America’s borders.

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